Credit Suisse Group AG said Wednesday it expects to make a loss before taxes of around CHF1.5 billion ($1.58 billion)in the fourth quarter, as net-asset outflows cause its wealth-management business to slump amid a painful restructuring of the bank.
Lower deposits and assets under management are set to lead to reduced net interest income and recurring commissions and fees, which will drag wealth management into a loss in the three months to the end of the year, the Swiss lender
CS,
CSGN,
said.
Credit Suisse experienced deposit and net-asset outflows in the first two weeks of October, it said, after social-media reports and a spike in credit-default swaps caused a frenzy over the bank’s financial position.
“In wealth management, these outflows have reduced substantially from the elevated levels of the first two weeks of October 2022 although have not yet reversed,” the Zurich-based bank said in a statement.
The company’s actual results will depend on a number of factors including the investment bank’s performance for the remainder of the quarter, the continued exit of noncore positions, any goodwill impairments, and potential real estate sales, Credit Suisse added.
Write to Ed Frankl at [email protected]
